This study develops a model to estimate the total cost of ownership of electric vehicles (EVs) in comparison to similar internal combustion engine (ICEVs) and hybrid electric vehicles (HEVs). The model includes issues related to purchase/finance, insurance, maintenance, resale value, future fuel prices and access to solar photovoltaic (PV). It also estimates the impact of proposed EV time-of-use rates on ownership costs.
Key findings are as follows:
- EVs on average cost more than their internal combustion engine (ICE) or hybrid electric vehicle (HEV) counterparts, though this gap is substantially reduced with the federal tax credit.
- The Nissan Leaf is cost competitive without the federal tax credit and has the lowest lifecycle vehicle cost when incorporating the federal tax credit (among all vehicles considered).
- Electricity rates in Hawaii are much higher than the national average. Using the Energy Information Administration’s range of forecasts for future oil prices (low, reference and high), a set of future electricity and gasoline prices are determined. The model finds that when oil prices are low or reference, lifetime fuel costs are higher for EVs than other vehicles. When oil prices are high, on the other hand, EVs offer notable cost savings while accounting for Hawaii’s historic relationship between oil prices and electric rates.
- Having residential PV substantially brings down the cost of EV ownership, even considering the capital expenditure for PV panels.
- The pilot and proposed TOU rates offered by the utility reduce lifecycle EV fuel costs, assuming charging only when rates are lowest, by an average of 10%.
Read the full report at the Electric Vehicle Transportation Center.